New York S09791 prohibits mandatory arbitration agreements in employment and consumer contracts, requiring disputes to be submitted to neutral.
New York S09791 amends the civil practice law and rules to prohibit mandatory arbitration agreements in employment and consumer contracts. These agreements, which force employees and consumers to agree to arbitration as a condition of employment or purchase, are deemed contrary to public policy. The bill mandates that any arbitration must be conducted by a neutral third-party arbitrator, who must disclose any potential conflicts of interest. If an arbitrator fails to disclose a relevant fact and a party objects, the award may be vacated.
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